CG seeks shareholders nod to sell stake in 2 overseas units

The divestment is part of the company's plan to divest its power business in Europe, North America and Indonesia at an enterprise value of about 115 million euro (about Rs 850 crore)PTI | July 22, 2016, 20:41 IST

The divestment is part of the company's plan to divest its power business in Europe, North America and Indonesia at an enterprise value of about 115 million euro (about Rs 850 crore).

The special resolution for divesting company's stake in these firms have been placed on the agenda of annual general meeting August 30, 2016, Crompton Greaves said in a regulatory filing.

The proposal provides for divesting company's entire investment in its subsidiary CG Holdings Belgium NV including in its subsidiaries and identified assets.

Besides, it provides for selling 51 per cent stake in PT Crompton Prima Switchgear Indonesia held by the Company s subsidiary, CG International Holdings Singapore PTE Ltd.

CG said: "In order to refocus on India operations, the Board considered it prudent to evaluate monetization options for its Non-India T&D business. Towards this, the Board has on 9 March 2016,...decided to divest the Company s power business in Europe, North America and Indonesia at an enterprise value of Euro 115 million."

The divestment will enable the Company to reduce debt, refocus its synergies in the emerging Indian power transmission and distribution business and on its industrial system business which provides significant growth opportunities, it said.

Crompton Greaves Ltd is an engineering corporation providing end-to-end solutions to utilities. At present it is mainly engaged in business-to-business (B2B) segment that covers transmission and distribution business; automation solutions and industrial businesses.

Its transmission and distribution (T&D) business comprises of Power Products, Systems and Services across India, America, Europe Middle East and Africa and in Indonesia.

“To save the environment and to fight climate change, my government has planned a major campaign. By 2022, we want to generate 175 GW of renewable energy. In the last three years, we have already achieved 60 GW or around one-third of this target,” he said.